GBP/USD Price Forecast: Slides to mid-1.3300s amid some USD buying ahead of Fed decision

• GBP/USD struggles to capitalize on its gains registered over the past two days amid a modest USD strength.

• The optimism over US-China trade talks revives the USD demand amid some repositioning ahead of the FOMC.

• Bears need to wait for a sustained break below the 100-period EMA on the 4-hour chart before placing fresh bets.

The GBP/USD pair attracts some sellers during the Asian session on Wednesday and erodes a part of its weekly gains registered over the past two days, to the 1.3400 mark. The intraday slide is sponsored by a modest US Dollar (USD) strength and drags spot prices below mid-1.3300s in the last hour.

From a technical perspective, the GBP/USD pair earlier this week showed some resilience near the 1.3250-1.3245 support and bounced off the 100-period Exponential Moving Average (SMA) on the 4-hour chart. Moreover, oscillators on daily/hourly charts are holding in positive territory. This, in turn, suggests that any subsequent slide might be seen as a buying opportunity near the 1.3300 round figure and remain limited.

However, a convincing break below the 1.3250-1.3245 pivotal support could make the GBP/USD pair vulnerable and set the stage for some meaningful corrective slide from the vicinity of mid-1.3400s, or the highest level since February 2022, touched last month. Spot prices might then accelerate the fall towards the 1.3200 mark en route to the 1.3170-1.3165 support before eventually dropping to the 1.3100 round figure.

On the flip side, momentum beyond the 1.3400 mark might confront some resistance near the 1.3445 region, or the multi-year peak. A sustained strength beyond will be seen as a fresh trigger for bullish traders and allow the GBP/USD pair to reclaim the 1.3500 psychological mark. The subsequent move up has the potential to lift spot prices further towards the 1.3570-1.3575 region en route to the 1.3600 round-figure mark.

GBP/USD 4-hour chart